In late February, Philippe Angers, then Offline’s President of Distributionand Marketing, confirmed the company’s acquisition of the English-languagedrama. Angers has since left the company and so has “Intimacy” — the filmwill now be distributed by Empire Pictures, a small U.S. distributor whoserecent releases include “Cartoon Noir” and Nick Broomfield‘s “Fetishes.”

According to Empire representatives, French company StudioCanal, which ownedthe rights to “Intimacy,” contacted Empire soon after the Cannes FilmFestival and a deal for the film closed late last month.

A source close to Offline confirmed for indieWIRE that the company is facinga precarious financial situation — Offline’s president Alexis Quinlan didnot return repeated phone calls seeking comment. A Variety story last monthindicated that the fledgling distributor was in debt, owing money to severalof its vendors. News of the money problems are raising questions aboutOffline’s ability to release Benoit Jacquot‘s “Sade,” which it alsoannounced as an acquisition.

“Intimacy” is currently slated for an October release through Empire. Basedon Hanif Kureishi‘s novel, the film stars Mark Rylance and Kerry Fox, who won a Silver Bear in Berlin for Best Actress, as two lovers who meet weeklyfor anonymous sex until their urges for something closer take over. Writingfrom Sundance, indieWIRE’s Park City critic Patrick McGavin wrote, “Serious, probing, and at times uncomfortably graphic, Chereau’s ‘Intimacy,’expresses…a raw, unvarnished sexual and emotional intensity.” [AnthonyKaufman]

(indieWIRE/07.09.01) — Concurrent with announcing its intentions to sellstock to the public as a way of retiring its company debt, Itemus alsoindicated in a prepared statement that the financial situation surroundingits acquisition of Shooting Gallery has “intensified.”

The reason for the heightened difficulties is a lawsuit that has been filedagainst Itemus related to its ownership of Shooting Gallery. While Itemustermed the claim as coming from “a party to one of Itemus’ agreementsentered into in connection with the acquisition of Shooting Gallery,” areport in today’s Hollywood Reporter indicates that the suit has been filedby investors in Shooting Gallery. Among them are former board member PeterJ. DaPuzzo, his son and former Shooting Gallery executive Peter T. DaPuzzoand others, according to the report. The Hollywood trade publicationreports that the suit, is seeking compensation and also charges ShootingGallery with “widespread financial mismanagement.”

While Itemus offered no details regarding the claim, it did indicate in thestatement that it would fight the suit and any others that arise. But itadded, “If Itemus is unable to successfully defend against such claims,absent the receipt of additional financing, it will be unable to satisfy itsobligations.”

The company went on to reiterate a point it has made clear since before allShooting Gallery employees were recently dismissed. It said, “Itemus isactively considering all options in regard to its Shooting Galleryinvestment, and is attempting to complete a transaction involving thedisposition of certain assets in the face of strong creditor pressures.”[Eugene Hernandez]

>> Lynch’s “Mulholland Drive” Stays in the Family at Universal

(indieWIRE/07.09.01) — Universal Focus will release David Lynch‘s Cannes 2001 entry, “Mulholland Drive” later this year, the company confirmed last week. The pact comes alongside the news that StudioCanal and Universal are joining forces.

StudioCanal financed the film’s leap from a two-hour ABC TV pilot to afeature. The film debuted in competition at Cannes where Lynch shared thebest director award with Joel Coen (“The Man Who Wasn’t There“). [Eugene Hernandez]

>> SAG Avoids Strike, Loses CEO and National Executive Director

(indieWIRE/07.09.01) — Hollywood producers and a leading labor guild haveaverted another strike. The Screen Actors Guild (SAG) and the AmericanFederation of Television and Radio Artists (AFTRA) reached an agreement withthe Alliance of Motion Picture & Television Producers (AMPTP) last week —agreeing to a three year pact that will now need approval from the twounions. While separately, John F. Cooke, who was set to join SAG as its CEOand National Executive Director, confirmed that he is withdrawing from thenew post.

Nine members of the SAG board sent a letter indicating that Cooke was namedto the position in violation of the SAG constitution and stating that therole of the new post would need to be dealt with by the complete SAG Board.The letter was sent after the Board had unanimously voted on the matter andpublicly announced Cooke’s appointment.

“It would be inappropriate for me to accept the Screen Actors Guild positionwithout clear authority to act on all the issues that are before the SAGmanagement and organization,” Cooke said in a prepared statement sent toindieWIRE. “It seems to me that SAG should attempt to implement therecommendations made in the Towers Perrin report, particularly a Boardrestructuring and a governance overhaul, before it seeks a leader.” Cookewill still leave the J. Paul Getty Trust later this year and pursue otheropportunities, according to the announcement. [Eugene Hernandez]